North America Cannabidiol (CBD) Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Sales Type (B2B, B2C), By End-use (Medical, Personal Use), By Region, And Segment Forecasts, 2024 - 2030

North America CBD Market Size & Trends

The North America cannabidiol market size was estimated at USD 6.7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 14.2% from 2024 to 2030. The CBD market size is expected to grow with the increasing legalization of hemp-based products. Companies are developing a variety of cannabidiol products, including edibles, topicals, and beverages, to meet the demand from consumers. Rise of e-commerce has allowed companies to reach a wider audience and increase sales through online channels, which has positively impacted the cannabidiol (CBD) market growth projections.

In addition, growing interest in the potential health benefits of cannabidiol has led to increased investment in research and development to understand its effects better and develop new products. CBD market is becoming more competitive, with a growing number of companies entering the market and offering similar products, which in turn is bolstering the market size. Moreover, growing recognition of therapeutic benefits of cannabidiol has driven consumers to purchase these products, even if they are expensive.

As a result, commercial retailers are now focusing on selling cannabis-based items, which have a higher profit margin. For instance, Abercrombie & Fitch-a clothing retailer-plans to sell CBD-infused body care products in more than 160 of its 250-plus stores. Many health and wellness stores, such as Walgreens Boots Alliance, CVS Health, and Rite Aid, now offer CBD-based products. CBD is a non-psychoactive compound found in the hemp plant and is used in various forms, such as cream, edibles, oils, and tinctures. It is marketed for its potential health benefits, such as reducing anxiety and pain. It has seen a surge in demand due to the increasing legalization and normalization of marijuana and hemp-based products.

CBD effectively treats conditions such as anxiety, seizures, and pain. Therefore, the demand for CBD for health and wellness is the primary factor driving the market's growth. In addition, increasing acceptance and use of these products due to government approvals are expected to increase production and sales. Furthermore, CBD oil is growing in popularity as an ingredient in skincare products for treating acne and wrinkles. For instance, Sephora recently added a line of CBD skincare products to its stores, and Ulta Beauty plans to launch its line of CBD-based products. Many new companies are also entering the market for CBD-infused cosmetic products.

Market Concentration & Characteristics

Analyzing the Cannabidiol (CBD) industry statistics, we have derived the market growth stage to be high, and pace of the market growth is accelerating. Cannabidiol market is characterized by a high degree of innovation owing to increased R&D activities on the use of cannabis and its medicinal properties, rising product demand due to its health benefits without intoxication, and increasing preference for cannabis extracts such as oils and tinctures.

Cannabidiol market is also characterized by a medium level of merger and acquisition (M&A) activity by the leading players. Through M&A activity, these companies can expand their product portfolio, enter new territories, and strengthen their market position. For instance, in March 2022, Aurora Cannabis Inc. announced to acquire TerraFarma Inc., a parent company of Thrive Cannabis. This acquisition aims to strengthen Aurora's position in the Canadian market and expand its product portfolio.

The cannabidiol industry is flourishing owing to the rising number of countries devising a systematic regulatory framework for the cultivation and sale of cannabis. For instance, as per regulations by the Government of Canada, a license is required for cultivation, processing, analytical testing, sale, and research of cannabis. These licenses are stated under paragraph 8(1) of the Cannabis Regulations of Canada. There are three types of cultivation licenses: licenses for micro cultivation, standard cultivation, and a nursery.

Legalizing cannabis-based products has opened significant opportunities for various end-use industries to expand their product offerings. The CBD-based products have diversified from traditional flowers and oils to edibles, beverages, skincare, and wellness products, CBD gummies, topical CBD creams & balms, and CBD products for pets. This could broaden the customer base and expand the market opportunities for players. For instance, in 2022, Canopy Growth Corporation announced the expansion of its cannabis beverage product portfolio and a brand campaign to drive awareness of its wide range of cannabis beverages.

Legalization of cannabis, cannabis-based products, and the popularity of CBD-infused foods are rapidly rising due to the various health benefits associated with CBD. Thus, due to legalization, some market players are expanding their market presence in such areas. For instance, in October 2022, Charlotte's Web Holdings, Inc. announced a distribution partnership with Gopuff Retail Company. The company offer its products through Gopuff Retail Company within U.S. states such as Arizona, Illinois, California, & New York and continues to expand throughout 2022 and 2023.

Source Type Insights

In 2023, hemp dominated the market and generated 53.6% of the revenue. This segment is expected to grow fastest due to rising demand from the pharmaceutical industry and growing consumer awareness of health benefits. Legalizing medicinal cannabis and growing consumer disposable income is also expected to boost the demand for cannabidiol in the pharmaceutical sector. High demand for hemp derived CBD products includes oils, tinctures, concentrates, capsules, topical solutions such as salves, lip balms, lotions, and edibles like baked goods, coffee, chocolate, gum, and candies will continue to boost market growth.

Furthermore, CBD derived from hemp is growing quickly because of its cost effective to extract oils, minimal chances of THC above the recommended limit and presence of various minor cannabinoids improving the entourage effect. Various industries such as pharmaceuticals, personal care products, nutraceuticals, and food and beverage companies are creating products that use hemp derived CBD for health and wellness reasons. Due to these factors, the segment is expected to experience significant growth in the future.

End-use Insights

In B2B end-use, pharmaceuticals accounted for the largest revenue share of 74.2% in 2023. The segment is expected to see substantial growth over the forecast period. A growing number of clinical trials to assess the effects of CBD on various health conditions is likely to fuel demand for these products over the forecast period. In addition, many companies purchase bulk CBD oil and produce CBD-infused products that consumers widely used as an alternative for managing pain and stress. As a result, these products are likely to be in a growth phase in the market.

The transformation of cannabidiol from herbal remedies to prescription drugs is expected to drive market growth. In addition, growing recognition of the medical benefits of cannabidiol, including its therapeutic properties, is expected to fuel demand for these products in the pharmaceutical sector.

Sales Type Insights

B2B segment dominated the market and accounted for the largest revenue share of 53.8% in 2023. This segment is anticipated to grow at the fastest CAGR over the forecast period, owing to a rise in the number of wholesalers offering CBD oil and the growing demand for CBD oil as a raw material. In addition, legalization of CBD products in various countries has opened more opportunities for supplying these products due to the expanding consumer base.

The sub-segment of hospital pharmacies within the B2C segment is expected to experience significant growth over the forecast period. This growth is due to a rise in companies partnering with retail pharmacies to improve their exposure and establish a dedicated space for customers to purchase CBD products. Moreover, the market is anticipated to offer ample opportunities for market participants due to the increase in pharmacies stocking up on the products, formation of exclusive partnerships between companies and retail pharmacies, and growing number of patients choosing CBD as a treatment option.

Regional Insights

North America is expected to experience significant growth in the market due to several factors, such as many health-conscious individuals, growing acceptance of CBD products, the presence of major manufacturers, and the approval of the U.S. Farm Bill in 2020. The region is considered the most advanced in cannabis and its products, including cannabidiol, with the highest number of CBD companies and favorable laws regarding the use of CBD products. In addition, growing awareness amongst the American citizens towards the multiple benefits associated with cannabidiol is boosting the U.S. CBD market.

U.S. Cannabidiol Market Trends

The U.S. dominated the CBD oil market and accounted for the largest revenue share in 2023. Several states in the U.S. have legislations that allow the cultivation, production, processing, sale, and taxation of cannabis. In the U.S., each state has its own set of legislation for regulating the use of cannabis, although federally, it is considered as an illegal drug. As per federal law, cannabis is illegal, while industrial hemp is not. Therefore, CBD derivatives can be legally produced and supplied. The popularity of CBD-infused foods is rapidly rising due to the various health benefits associated with CBD. More and more restaurants are now offering food and beverages that contain CBD. However, the FDA does not allow adding CBD to food and drinks.

Canada Cannabidiol Market Trends

Canada CBD oil market is anticipated to grow at the fastest CAGR in North America CBD market during the forecast period. Canada has legalized the production and sale of both CBD and THC-potent marijuana for medical purposes governed by Health Canada. The Cannabis Act 2018 fabricates a framework to regulate the production, sale, and possession of cannabis across Canada. The availability of CBD is authorized only by prescription in the country. The Canadian government has placed certain restrictions on the type of cannabis extracts to be sold legally. Cannabis in the form of pre-rolled joints, flower buds, and cannabis oil, seeds, & plants can be sold, but concentrates and edibles are exempted from being sold. In addition, a federal license is required for growing and cultivating cannabis plants commercially in the country. In the case of specific cannabis plants, like industrial hemp, the authorized license for cultivation would be issued under Industrial Hemp Regulations.

Key North America Cannabidiol Company Insights

Several market players are acquiring smaller players to strengthen their market positions. This strategy enables companies to increase their capabilities, expand product portfolios, and improve competencies. Key players in the CBD medicine market undertake this strategy to strengthen their product portfolios and offer customers diverse, technologically advanced, innovative products. Companies prominently adopt this strategy to expand their customer base. Several market players are entering into partnerships & collaborations to grow & innovate and improve their competitiveness by combining the expertise & efforts of other organizations.

Recent Developments

• In January 2023, Medical Marijuana, Inc. announced that HempMeds Brasil, its subsidiary, had launched 2 new full-spectrum products in Brazil. The concentrations range from 3,000-6,000 mg and are available in 30 mL and 60 mL jars.

• In October 2022, Medical Marijuana, Inc. announced the collaboration of its subsidiary, HempMeds Mexico, with the Autonomous University of Barcelona, Spain, and the Meritorious Autonomous University of Puebla, Mexico to conduct a study demonstrating the benefits of CBD in treating Parkinson’s disease.

• In October 2022, High Tide, Inc. announced the launch of multi-cannabinoid products by its subsidiary, NuLeaf Naturals, in Ontario, Canada. The products listed for sale include Full Spectrum Hemp Multicannabinoid oil and plant-based softgels with delta-9 tetrahydrocannabinol, cannabichromene, cannabidiol, cannabigerol, and cannabinol.

• In January 2022, Elixinol announced the launch of 2 innovative CBD products - the Sleep Rapid Rest Liposome and Sleep Gummies - that focus on offering support for sleep. The former contains a customized formula of CBN (cannabinol), CBD, chamomile, and lemon balm. On the other hand, Sleep Gummy contains 2mg CBN and 15mg CBD.

North America Cannabidiol Market Report Scope

North America Cannabidiol Market Report Segmentation

This report forecasts revenue growth at regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the North America Cannabidiol (CBD) market report based on source type, sales type, end-use, and region:

• Source Type Outlook (Revenue, USD Million, 2018 - 2030­)

  • Hemp

  • Marijuana

• Sales Type Outlook (Revenue, USD Million, 2018 - 2030­)

  • B2B

    • By End-use

      • Pharmaceuticals

      • Wellness

        • Food & Beverages

        • Personal Care & Cosmetics

        • Nutraceuticals

        • Others

  • B2C

    • By Sales Channel

      • Hospital Pharmacies

      • Online

      • Retail Stores

    • By End-use

      • Medical

        • Chronic Pain

        • Mental Disorders

        • Cancer

        • Others

      • Personal Use

• End-use Outlook (Revenue, USD Million, 2018 - 2030_­)

  • Medical

    • Chronic Pain

    • Mental Disorders

    • Cancer

    • Others

  • Personal Use

  • Pharmaceuticals

  • Wellness

    • Food & Beverages

    • Personal Care & Cosmetics

    • Nutraceuticals

    • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030­)

  • North America

    • U.S.

    • Canada